Okay, just to clarify everything....it IS hardware based. The one that Best Buy sells is the HP iPAQ 5455. I have attatched an image and quote from Pocket PC Central:
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Quote:
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A small panel is located below the nav-pad in the center of the unit. This can be programmed to accept only certain fingerprints, thereby locking the device to all but users with fingerprints in the iPAQ's memory.
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--deftech